Reference no: EM133175661

Activity 4: Cafeteria Plan

We have indicated that employee choice is a vital element in today's medical plans. The one-size-fits-all plan just does not work well with the diverse employee populations in American businesses. Read the following scenario about a hypothetical company struggling with its benefits options.

Bryan Construction, a company of 400 hundred employees, is considering the development of a Cafeteria Plan. The Benefits Committee has met to decide what type of plan will be offered. There are two factions within the committee: those that advocate a full flex credit-based plan and those that support the modular approach. In addition, there is heated discussion as to whether to incorporate flexible spending accounts and who will be responsible for the communication and enrollment activities surrounding the plan.

Part A

Compare and contrast the advantages and disadvantages of both the flex-based and modular forms of cafeteria plans. Which approach do you prefer? Defend your decision with specific references to two (2) Web-based articles supportive of your position. (25 points)

Part B

Defend the position regarding the necessity of including flexible spending accounts as part of the new cafeteria plan. Include in your discussion both Healthcare Reimbursement Accounts and Dependent Care Accounts.

Part C

Conduct an Internet search on the importance of effective communication of cafeteria plans. Use the results of that activity to discuss how you would communicate the plan to all 400 employees. You must reference at least two (2) sources from your search in your response.

Part D

Create a memo to the SVP of Human Resources outlining all of your recommendations for the Bryan Construction Company Cafeteria plan. Your memo should list your recommendations and the reasons you believe your conclusions are in the best interests of the company.